Apple’s decision to split its shares was made to help make it more accessible to investors, CNBC’s Jim Cramer said Friday, referring to a conversation he held with CEO Tim Cook.
“I think Apple is taking the right step. Tim said to me last night, ‘Hello, I want more people in the stock,'” Cramer told Squawk Box. “These other companies should do the same.” .
The iPhone maker, which saw an 11% increase in sales in its last quarter, also announced Thursday that it would make a four-for-one split in late August.
Apple shareholders will receive three additional shares at the close of business on August 24th. Apple traded around $ 407 on Friday morning, meaning investors could buy shares around $ 102 when the shares start trading tightly by division. 31.
Apple has also done so several times in the past, most recently in 2014 when it made a seven-to-one stock split. Apple was then trading north at $ 600 per share.
A division of shares does not alter the company’s foundations, Cramer told Squawk on the Street. But Cramer said it can make stocks more attractive to retail investors who may avoid investing in a company because of a high price, such as a stand-alone stock shock.
“The idea that you want more people in your stock is refreshing,” Cramer said of Apple’s Cook. “He doesn’t play in hedge funds. He plays people who buy the product and have 99% satisfaction. It’s up to him.”
The host of “Mad Money” said other companies don’t seem to focus much on accessibility for retail investors, like Amazon. The e-commerce giant and the cloud traded around $ 3,200 per share, based on previous market movements.
“Apple cares about the little one. Amazon isn’t focused on that. They focus on getting the merchandise to the little one,” Cramer said.
Disclosure: Cramer’s charitable trust owns shares in Apple and Amazon.